CDK accelerates commitment deadline; Kofax, Signature Aviation price talk emerges

By Sara Rosenberg

New York, June 6 – In the primary market on Monday, CDK Global Inc. opted to move up the commitment deadline for its first-lien term loan.

Also, Kofax disclosed price talk on its U.S. and euro first-lien term loans in connection with its lender call, and Signature Aviation plc (Brown Group Holding LLC) approached lenders with a term loan B-2.

CDK tweaks timing

CDK accelerated the commitment deadline for its $3.35 billion seven-year first-lien term loan (B1/B+) to noon ET on Thursday from 5 p.m. ET on June 14, a market source remarked.

Talk on the term loan is SOFR plus 475 basis points to 500 bps with a 0.5% floor, an original issue discount of 95 to 96 and 101 soft call protection for six months.

The company’s $4 billion of credit facilities also include a $650 million revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, BMO Capital Markets, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Securities Inc., BNP Paribas Securities Inc., CIBC, Bank of Nova Scotia, Credit Agricole, MUFG, Societe Generale and Golub are leading the deal that will be used to help fund the buyout of the company by Brookfield Business Partners for $54.87 per share. The transaction has a total enterprise value of $8.3 billion.

Closing is expected in the third quarter, subject to the tender of a majority of CDK’s outstanding shares, the expiration or termination of the antitrust waiting period and other customary conditions.

CDK is a Hoffman Estates, Ill.-based automotive retail technology company.

Kofax guidance

Kofax held its lender call on Monday morning and announced price talk on its $1.025 billion seven-year first-lien term loan B (B2/B/BB-) and €300 million seven-year first-lien term loan B (B2/B/BB-), according to market source.

The U.S. term loan is talked at SOFR+10 bps CSA plus 525 bps with a 0.5% floor and an original issue discount of 93 to 94, and the euro term loan is talked at Euribor plus 525 bps with a 0% floor and a discount of 93 to 94, the source said. Both loans have 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 14 for the U.S. term loan and at noon ET on June 14 for the euro term loan.

The company is also getting a $348 million privately placed second-lien term loan (Caa2/CCC+/CCC+).

Kofax leads

JPMorgan Chase Bank, Credit Suisse, UBS Securities, Jefferies LLC, Blackstone Credit, PSP Investments, Wells Fargo Securities LLC, Antares Capital, Security Benefit, BMO Capital Markets, Goldman Sachs, KKR Capital Markets, Stone Point Capital and Brinley Partners LP are leading Kofax’s new bank debt.

The loans will be used to help fund the buyout of the company by Clearlake Capital Group LP and TA Associates from Thoma Bravo.

Closing is expected in the third quarter, subject to customary conditions.

Kofax is an Irvine, Calif.-based provider of intelligent automation software to facilitate digital workflow transformations.

Signature holds call

Signature Aviation held a lender call at 1 p.m. ET, launching a $1.1 billion seven-year term loan B-2 at talk of SOFR+0 basis points CSA plus 400 bps with a 0.5% floor, an original issue discount of 96 and 101 soft call protection for six months, a market source said.

Commitments are due at 5 p.m. ET on Thursday, the source added.

RBC Capital Markets is leading the deal that will be used to fund the acquisition of the FBO and hangar portfolio of Truman Arnold Cos. (TAC Air).

Signature Aviation is a London-based aviation services company.

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